Foreign Account Tax Compliance Act Answer Book (2018 Edition)

Product Details

Foreign Account Tax Compliance Act Answer Book provides a detailed analysis of FATCA and the requirements it imposes on foreign financial institutions (FFIs) to disclose annually information about accounts held by U.S. individuals, or foreign companies in which U.S. individuals hold a substantial ownership interest.

Written and edited by Matthew D. Lee (Fox Rothschild LLP), this question-and-answer guide walks the reader through every aspect of the Foreign Account Tax Compliance Act (FATCA) requirements. The book explains FATCA terms and concepts, identifies which FFIs are covered by the Act (over 155,000) and which countries (over 100) have signed, or indicated their willingness to sign, bilateral tax treaties with the United States (called Intergovernmental Agreements), and describes the obligations placed upon FFIs under the Act.

Additionally, Foreign Account Tax Compliance Act Answer Book provides guidance on how to create an acceptable compliance program and what is required to register as a foreign financial institution.

Q 2.1 : What is the definition of the terms “account” and “financial account”?2-2

Q 2.1.1 : What is the definition of a “depository account”?2-3

Q 2.1.2 : What is the definition of a “custodial account”?2-3

Q 2.1.3 : What is the definition of an “equity or debt interest”?2-4

Q 2.1.4 : What is the definition of “cash value insurance contract”?2-5

Q 2.1.5 : What are the rules for determining when a financial institution maintains a “financial account”?2-7

Q 2.1.6 : What are the exceptions to the definition of “financial account”?2-7

Q 2.2 : How does an FFI determine the balance or value of a financial account for FATCA purposes?2-10

Q 2.2.1 : How does an FFI determine the balance or value of an immediate annuity?2-11

Q 2.2.2 : How is the account balance determined in the case of multiple accounts?2-11

Q 2.2.3 : How does an FFI determine an account’s balance or value if the account is denominated in foreign currency?2-14

Q 2.3 : What is the definition of the term “AML due diligence”?2-14

Q 2.4 : What is the definition of the term “annuity contract”?2-14

Q 2.5 : What is the definition of the term “assumes primary withholding responsibility”?2-15

Q 2.6 : What is the definition of the term “backup withholding”?2-15

Q 2.7 : What is the definition of the term “blocked account”?2-15

Q 2.8 : What is the definition of the term “branch”?2-15

Q 2.9 : What is the definition of the term “broker”?2-16

Q 2.10 : What is the definition of the term “chapter 3”?2-16

Q 2.11 : What is the definition of the term “chapter 4”?2-16

Q 2.12 : What is the definition of the term “chapter 4 status”?2-17

Q 2.13 : What is the definition of the term “chapter 4 withholding rate pool”?2-17

Q 2.14 : What is the definition of the term “clearing organization”?2-17

Q 2.15 : What is the definition of the term “complex trust”?2-17

Q 2.16 : What is the definition of the term “Compliance FI”?2-18

Q 2.17 : What is the definition of the term “consolidated obligations”?2-18

Q 2.18 : What is the definition of the term “customer master file”?2-19

Q 2.19 : What is the definition of the term “deferred annuity contract”?2-19

Q 2.20 : What is the definition of the term “direct reporting NFFE”?2-19

Q 2.21 : What is the definition of the term “documentary evidence”?2-19

Q 2.22 : What is the definition of the term “documentation”?2-19

Q 2.23 : What is the definition of the term “dormant account”?2-20

Q 2.24 : What is the definition of the term “effective date of the FFI agreement”?2-20

Q 2.25 : What is the definition of the term “EIN”?2-20

Q 2.26 : What is the definition of the term “electronically searchable information”?2-20

Q 2.27 : What is the definition of the term “entity”?2-20

Q 2.28 : What is the definition of the term “entity account”?2-21

Q 2.29 : What is the definition of the term “excepted NFFE”?2-21

Q 2.30 : What is the definition of the term “exempt beneficial owner”?2-21

Q 2.31 : What is the definition of the term “exempt recipient”?2-21

Q 2.32 : What is the definition of the term “expanded affiliated group”?2-22

Q 2.32.1 : What is the “ownership test” for purposes of an expanded affiliated group?2-22

Q 2.32.2 : How are warrants, options, and obligations convertible into equity treated for purposes of determining ownership?2-23

Q 2.32.3 : How is an investment entity considered for purposes of an expanded affiliated group?2-24

Q 2.32.4 : What other rules apply in the expanded affiliated group context?2-24

Q 2.33 : What is the definition of the term “FATCA ID”?2-25

Q 2.34 : What is the definition of the term “FATF”?2-26

Q 2.35 : What is the definition of the term “FATF-compliant jurisdiction”?2-26

Q 2.36 : What is the definition of the term “FFI”?2-26

Q 2.37 : What is the definition of the term “FFI agreement”?2-26

Q 2.38 : What is the definition of the term “financial institution”?2-27

Q 2.39 : What is the definition of the term “flow-through entity”?2-27

Q 2.40 : What is the definition of the term “flow-through withholding certificate”?2-27

Q 2.41 : What is the definition of the term “foreign entity”?2-27

Q 2.42 : What is the definition of the terms “passthru payment” and “foreign passthru payment”?2-27

Q 2.43 : What is the definition of the term “foreign payee”?2-28

Q 2.44 : What is the definition of the term “foreign person”?2-28

Q 2.45 : What is the definition of the term “Global Intermediary Identification Number” or GIIN?2-28

Q 2.46 : What is the definition of the term “grandfathered obligation”?2-28

Q 2.47 : What is the definition of the term “grantor trust”?2-28

Q 2.48 : What is the definition of the term “group annuity contract”?2-28

Q 2.49 : What is the definition of the term “group insurance contract”?2-29

Q 2.50 : What is the definition of the term “immediate annuity”?2-29

Q 2.51 : What is the definition of the term “individual account”?2-29

Q 2.52 : What is the definition of the term “insurance company”?2-29

Q 2.53 : What is the definition of the term “insurance contract”?2-30

Q 2.54 : What is the definition of the term “intergovernmental agreement”?2-30

Q 2.54.1 : What is the definition of the term “Model 1 IGA”?2-30

Q 2.54.2 : What is the definition of the term “Model 2 IGA”?2-30

Q 2.55 : What is the definition of the term “intermediary”?2-31

Q 2.56 : What is the definition of the term “intermediary withholding certificate”?2-31

Q 2.57 : What is the definition of the term “investment-linked annuity contract”?2-31

Q 2.58 : What is the definition of the term “investment-linked insurance contract”?2-31

Q 2.59 : What is the definition of the term “IRS FFI list”?2-31

Q 2.60 : What is the definition of the term “Lead FI”?2-32

Q 2.61 : What is the definition of the term “life annuity contract”?2-32

Q 2.62 : What is the definition of the term “life insurance contract”?2-32

Q 2.63 : What is the definition of the term “limited branch”?2-32

Q 2.64 : What is the definition of the term “limited FFI”?2-34

Q 2.65 : What is the definition of the term “Member FFI”?2-36

Q 2.66 : What is the definition of the term “nonfinancial foreign entity” or “NFFE”?2-36

Q 2.67 : What is the definition of the term “non-exempt recipient”?2-36

Q 2.68 : What is the definition of the term “nonparticipating FFI”?2-37

Q 2.69 : What is the definition of the term “nonqualified intermediary” or “NQI”?2-37

Q 2.70 : What is the definition of the term “nonreporting IGA FFI”?2-37

Q 2.71 : What is the definition of the term “non-U.S. account”?2-38

Q 2.72 : What is the definition of the term “nonwithholding partnership” or “NWP”?2-38

Q 2.73 : What is the definition of the term “nonwithholding trust” or “NWT”?2-39

Q 2.74 : What is the definition of the term “offshore obligation”?2-39

Q 2.75 : What is the definition of the term “owner”?2-39

Q 2.76 : What is the definition of the term “participating FFI”?2-39

Q 2.77 : What is the definition of the term “participating FFI group”?2-40

Q 2.78 : What is the definition of the term “passive NFFE”?2-40

Q 2.79 : What is the definition of the term “payee”?2-40

Q 2.80 : What is the definition of the term “payment with respect to an offshore obligation”?2-40

Q 2.81 : What is the definition of the term “payor”?2-40

Q 2.82 : What is the definition of the term “permanent residence address”?2-41

Q 2.83 : What is the definition of the term “person”?2-42

Q 2.84 : What is the definition of the term “preexisting account”?2-42

Q 2.85 : What is the definition of the term “preexisting entity account”?2-42

Q 2.86 : What is the definition of the term “preexisting individual account”?2-43

Q 2.87 : What is the definition of the term “preexisting obligation”?2-43

Q 2.88 : What is the definition of the term “pre-FATCA Form W-8”?2-45

Q 2.89 : What is the definition of the term “point of contact”?2-45

Q 2.90 : What is the definition of the term “private arrangement intermediary”?2-46

Q 2.91 : What is the definition of the term “qualified intermediary” or “QI”?2-46

Q 2.92 : What is the definition of the term “qualified intermediary agreement” or “QI agreement”?2-46

Q 2.93 : What is the definition of the term “QI branch of a U.S. financial institution”?2-46

Q 2.94 : What is the definition of the term “recalcitrant account holder”?2-46

Q 2.94.1 : When does an account holder’s status as “recalcitrant” begin?2-48

Q 2.94.2 : When does an account holder’s status as “recalcitrant” end?2-49

Q 2.95 : What is the definition of the term “registered deemed-compliant FFI”?2-49

Q 2.96 : What is the definition of the term “related entity”?2-50

Q 2.97 : What is the definition of the term “relationship manager”?2-50

Q 2.98 : What is the definition of the term “reportable payment”?2-50

Q 2.99 : What is the definition of the term “Reporting FI”?2-50

Q 2.100 : What is the definition of the term “reporting Model 1 FFI”?2-51

Q 2.101 : What is the definition of the term “reporting Model 2 FFI”?2-51

Q 2.102 : What is the definition of the term “responsible officer”?2-51

Q 2.103 : What is the definition of the term “responsible party”?2-52

Q 2.104 : What is the definition of the term “simple trust”?2-52

Q 2.105 : What is the definition of the term “Single FI”?2-52

Q 2.106 : What is the definition of the term “specified insurance company”?2-52

Q 2.107 : What is the definition of the term “sponsored FFI”?2-53

Q 2.108 : What is the definition of the term “sponsored FFI group”?2-53

Q 2.109 : What is the definition of the term “sponsored direct reporting NFFE”?2-53

Q 2.110 : What is the definition of the term “sponsoring entity”?2-53

Q 2.111 : What is the definition of the term “standardized industry code”?2-53

Q 2.112 : What is the definition of the term “standing instructions to pay amounts”?2-54

Q 2.113 : What is the definition of the term “subject to withholding”?2-54

Q 2.114 : What is the definition of the term “substantial U.S. owner”?2-54

Q 2.114.1 : What are the rules for determining the extent of a person’s interest in a foreign corporation?2-55

Q 2.114.2 : What are the rules for determining the extent of a person’s interest in a foreign partnership or foreign trust?2-55

Q 2.114.3 : What are the rules for determining the extent of a person’s interest in a foreign entity if the person holds an option to acquire such interest?2-56

Q 2.114.4 : What are the rules for determining an individual’s proportionate interest in a foreign entity?2-56

Q 2.114.5 : What are the rules for determining an individual’s interest in a foreign entity where the interests are owned or held by a related person?2-57

Q 2.114.6 : How do you determine if an individual has a beneficial interest in a foreign trust?2-58

Q 2.114.7 : How do you determine the 10% threshold in the case of a beneficial interest in a foreign trust?2-58

Q 2.114.8 : What are the exceptions to the “substantial U.S. owner” rules in the context of foreign trusts?2-59

Q 2.114.9 : How do these rules apply in the context of investment entities and specified insurance companies?2-60

Q 2.114.10 : On what date must a foreign entity make the determination as to whether it has a “substantial U.S. owner”?2-60

Q 2.115 : What is the definition of the term “territory entity”?2-61

Q 2.116 : What is the definition of the term “territory financial institution”?2-61

Q 2.117 : What is the definition of the term “territory financial institution treated as a U.S. person”?2-61

Q 2.118 : What is the definition of the term “territory NFFE”?2-61

Q 2.119 : What is the definition of the term “TIN”?2-62

Q 2.120 : What is the definition of the term “United States”?2-62

Q 2.121 : What is the definition of the term “U.S. account”?2-62

Q 2.121.1 : Who is a “specified U.S. person” for purposes of FATCA?2-62

Q 2.121.2 : Who is a “U.S. person” for purposes of FATCA?2-63

Q 2.121.3 : What is the definition of the term “U.S.-owned foreign entity”?2-65

Q 2.121.4 : What is the definition of “account holder”?2-65

Q 2.121.5 : What are the exceptions to “U.S. account” status?2-67

Q 2.122 : What is the definition of the term “U.S. branch treated as a U.S. person”?2-68

Q 2.123 : What is the definition of the term “U.S. financial institution”?2-68

Q 2.124 : What is the definition of the term “U.S. indicia”?2-68

Q 2.125 : What is the definition of the term “U.S. payee”?2-69

Q 2.126 : What is the definition of the term “U.S. payor”?2-69

Q 2.127 : What is the definition of the term “U.S. territory or possession of the United States”?2-69

Q 2.128 : What is the definition of the term “U.S. withholding agent”?2-69

Q 2.129 : What is the definition of “withholdable payment” for FATCA purposes?2-70

Q 2.129.1 : What is the definition of “U.S. source FDAP income”?2-70

Q 2.129.2 : What is the amount of U.S. source FDAP income?2-71

Q 2.129.3 : When is a payment of U.S. source FDAP income made?2-72

Q 2.129.4 : What is the definition of the term “gross proceeds”?2-72

Q 2.129.5 : For purposes of determining “gross proceeds,” what is the definition of “sale or other disposition”?2-72

Q 2.129.6 : What is the definition of “property of a type that can produce interest or dividend payments that would be U.S. source FDAP income”?2-73

Q 2.129.7 : When are gross proceeds deemed to be paid?2-74

Q 2.129.8 : What is the amount of gross proceeds?2-74

Q 2.129.9 : What types of payments are not treated as withholdable payments under FATCA?2-75

Q 2.129.10 : Under what circumstances must a flow-through entity, complex trust, or estate treat U.S. source FDAP income as having been paid by such entity to its partners, owners, or beneficiaries?2-79

Q 2.130 : What is the definition of the term “withholding”?2-81

Q 2.131 : What is the definition of “withholding agent” for purposes of FATCA?2-81

Q 3.3.10 : What are the requirements to qualify as a “sponsored investment entity” or “sponsored controlled foreign corporation”?3-38

: Obligations of a Registered Deemed-Compliant FFI3-40

Q 3.4 : What are the procedural obligations of a registered deemed-compliant FFI?3-40

Q 3.5 : What if a deemed-compliant FFI becomes a participating FFI or a member of a participating FFI group as a result of a merger or acquisition?3-41

: Certified Deemed-Compliant FFIs3-41

Q 3.6 : What is a “certified deemed-compliant FFI”?3-41

Q 3.7 : What are the types of certified deemed-compliant FFIs recognized by the IRS?3-42

: Nonregistering Local Banks3-42

Q 3.7.1 : What is a “nonregistering local bank”?3-42

: FFIs with Only Low-Value Accounts3-44

Q 3.7.2 : What is an “FFI with only low-value accounts”?3-44

: Sponsored, Closely Held Investment Vehicles3-45

Q 3.7.3 : What is a “sponsored, closely held investment vehicle”?3-45

: Limited Life Debt Investment Entities3-46

Q 3.7.4 : What is a “limited life debt investment entity”?3-46

Q 3.7.5 : What are the requirements to qualify as a “limited life debt investment entity”?3-47

: Certain Investment Entities That Do Not Maintain Financial Accounts3-48

Q 3.7.6 : What are the requirements to qualify as an “investment entity that does not maintain financial accounts”?3-48

: Owner-Documented FFIs3-48

Q 3.8 : What is an “owner-documented FFI”?3-48

Q 3.8.1 : What is the definition of a “designated withholding agent” for purposes of an owner-documented FFI?3-49

Q 3.8.2 : What are the requirements of owner-documented FFI status?3-49

Chapter 4:

Withholding Obligations on Payments to Foreign Financial Institutions

: Special Withholding Rules4-2

Q 4.1 : What is the withholding obligation on payments of U.S. source fixed or determinable annual or periodic (FDAP) income to participating FFIs and deemed-compliant FFIs that are nonqualified intermediaries (NQIs), nonwithholding foreign partnerships (NWPs), nonwithholding trusts (NWTs), or U.S. branches acting as intermediaries?4-2

Q 4.1.1 : What is the withholding obligation of intermediaries and flow-through entities?4-3

: Election to Be Withheld Upon4-3

Q 4.1.2 : What is the obligation to withhold if a participating FFI or registered deemed-compliant FFI makes an election to be withheld upon?4-3

: Territory Financial Institution4-5

Q 4.1.3 : What is the withholding obligation of a territory financial institution?4-5

: Foreign Branch of a U.S. Financial Institution4-5

Q 4.1.4 : What is the withholding obligation of a foreign branch of a U.S. financial institution?4-5

: Gross Proceeds4-7

Q 4.1.5 : What is the withholding obligation on payments of gross proceeds?4-7

: Coordination of Withholding Under Section 1471(a) and (b)4-7

Q 4.2 : Which entities are deemed to satisfy their withholding obligations under both FATCA and section 1471?4-7

: Payments for Which No Withholding Is Required4-7

Q 4.3 : How does a withholding agent determine if an otherwise withholdable payment is exempt from withholding?4-7

Q 4.3.1 : What is the withholding obligation if the withholding agent lacks control, custody, or knowledge?4-8

Q 4.3.2 : What is the withholding obligation for certain payments made prior to July 1, 2016?4-9

Q 4.3.3 : What is the withholding obligation with respect to payments to a participating FFI?4-10

Q 4.3.4 : What is the withholding obligation with respect to payments to a deemed-compliant FFI?4-10

Q 4.3.5 : What is the withholding obligation with respect to payments to an exempt beneficial owner?4-11

Q 4.3.6 : What is the withholding obligation with respect to payments to a territory financial institution?4-11

Q 4.3.7 : What is the withholding obligation with respect to payments to an account with a clearing organization with FATCA-compliant membership?4-11

Q 4.3.8 : What is the withholding obligation with respect to payments to certain excepted accounts?4-12

: Withholding Requirements If Source or Character of Payment Is Unknown4-12

Q 4.4 : What is the withholding obligation if the withholding agent is unable to determine the source or character of a payment?4-12

: Grandfathered Obligations4-13

Q 4.5 : What is the withholding obligation with respect to “grandfathered obligations”?4-13

Q 4.5.1 : What is the definition of “grandfathered obligation”?4-13

Q 4.5.2 : What is the definition of the term “obligation”?4-15

Q 4.5.3 : What is the definition of “date outstanding” for purposes of “grandfathered obligations”?4-16

Q 4.5.4 : What is the definition of a “material modification”?4-17

: Application to Flow-Through Entities4-17

Q 4.6 : How are the “grandfathered obligation” rules applied to flow-through entities?4-17

: Determination by Withholding Agent of Grandfathered Treatment4-18

Q 4.7 : How does a withholding agent determine if an obligation is subject to grandfathered treatment under FATCA?4-18

Chapter 5:

Identification of Payee

: Definition of “Payee”5-3

Q 5.1 : Who is a “payee” for purposes of FATCA?5-3

Q 5.1.1 : What are the exceptions to the general rule for determining the “payee”?5-3

: Foreign Assets or Intermediaries5-4

Q 5.1.2 : How is “payee” defined in the case of foreign agents or intermediaries?5-4

: Foreign Flow-Through Entity5-4

Q 5.1.3 : How is “payee” defined in the case of a foreign flow-through entity?5-4

: U.S. Intermediaries or Agents of a Foreign Person5-5

Q 5.1.4 : How is “payee” defined in the case of a U.S. intermediary or agent of a foreign person?5-5

: Territory Financial Institution5-6

Q 5.1.5 : How is “payee” defined in the case of a territory financial institution?5-6

: Disregarded Entity or Branch5-6

Q 5.1.6 : How is “payee” defined in the case of a disregarded entity or branch?5-6

: U.S. Branch Treated As a U.S. Person5-7

Q 5.1.7 : How is “payee” defined in the case of a U.S. branch treated as a U.S. person?5-7

: Foreign Branch of a U.S. Person5-7

Q 5.1.8 : How is “payee” defined in the case of a foreign branch of a U.S. person?5-7

: Determination of Payee’s Status5-8

Q 5.2 : How does a withholding agent determine the FATCA status of a payee?5-8

Q 5.2.1 : How does a withholding agent determine if a payment is received by an intermediary?5-8

Q 5.2.2 : How does a withholding agent make the determination of entity type?5-9

Q 5.2.3 : How does a withholding agent determine whether a payment is made to a QI, WP, or WT?5-10

Q 5.15.8 : What are the GIIN verification rules for sponsoring entities?5-102

: Reason-to-Know Rules5-103

Q 5.15.9 : When is a withholding agent deemed to know that a claim of chapter 4 status is unreliable or incorrect?5-103

Q 5.15.10 : What are the reason-to-know rules applicable to an entity’s FATCA status?5-103

Q 5.15.11 : What are the reason-to-know rules applicable to withholding certificates?5-104

Q 5.15.12 : What are the reason-to-know rules applicable to written statements?5-105

Q 5.15.13 : What are the reason-to-know rules applicable to documentary evidence?5-105

Q 5.15.14 : What are the specific standards of knowledge applicable when the only documentary evidence is a code or classification?5-107

: U.S. Indicia for Entities5-107

Q 5.15.15 : What are U.S. indicia for entities?5-107

Q 5.15.16 : What documentation is required to cure U.S. indicia with regard to entities?5-108

: Standards of Knowledge Applicable to Intermediaries and Flow-Through Entities5-109

Q 5.15.17 : What are the specific standards of knowledge applicable to documentation received from intermediaries and flow-through entities?5-109

: Limits on Reason-to-Know Rules5-111

Q 5.15.18 : What are the limits on the reason-to-know rules as they relate to documentation provided by participating FFIs and registered deemed-compliant FFIs that are intermediaries or flow-through entities?5-111

Q 5.15.19 : What is a withholding agent’s scope of review for preexisting obligations of entities?5-113

Q 5.15.20 : What is a withholding agent’s obligation where there is reason to know there are U.S. indicia associated with a preexisting obligation?5-114

Q 5.15.22 : What rules apply to determining a withholding agent’s obligations in the case of a conduit financing arrangement?5-116

: Presumptions Regarding FATCA Status of the Person Receiving the Payment in the Absence of Documentation5-116

Q 5.16 : How does a withholding agent determine the FATCA status of a payee in the absence of documentation?5-116

Q 5.16.1 : What are the rules that a withholding agent must apply to determine whether a payee is an individual or entity?5-116

Q 5.16.2 : What are the rules that a withholding agent must apply to determine the U.S. or foreign status of the payee?5-117

Q 5.16.3 : What are the rules that a withholding agent must apply to determine the chapter 4 status of a foreign entity?5-117

Q 5.16.4 : What are the rules that a withholding agent must apply to determine the chapter 4 status of an intermediary?5-119

Q 5.16.5 : Under what circumstances may a withholding agent presume that a U.S. branch is the payee of a payment that is effectively connected with the conduct of a trade or business in the United States?5-119

: Joint Payees5-120

Q 5.16.6 : What rules must a withholding agent apply in the case of a payment to joint payees?5-120

: Rebuttal of Presumptions5-120

Q 5.16.7 : Under what circumstances may a payee rebut the FATCA presumption rules?5-120

: Effect of Reliance on Presumptions5-121

Q 5.16.8 : May a withholding agent be held liable for withholding if it relies upon the FATCA presumption rules?5-121

: Effect of Actual Knowledge or Reason to Know Otherwise5-121

Q 5.16.9 : What if a withholding agent applies the presumption rules but has actual knowledge of a payee’s chapter 4 status, or reason to know otherwise?5-121

Chapter 6:

Obligations of Participating Foreign Financial Institutions

: FFI Agreement6-3

Q 6.1 : What is an FFI agreement?6-3

Q 6.2 : When is an FFI agreement considered to be in effect?6-4

: Overview of Obligations Under FFI Agreement6-4

Q 6.3 : What are the obligations of an FFI under an FFI agreement?6-4

Q 6.3.1 : Under what circumstances is a participating FFI required to deduct and withhold tax?6-4

Q 6.3.2 : Under what circumstances is a participating FFI required to identify and document its U.S. accounts?6-4

Q 6.3.3 : Under what circumstances is a participating FFI required to report account information to the IRS?6-5

Q 6.3.4 : What are the rules for FFIs that are part of an expanded affiliated group?6-5

Q 6.3.5 : How is a participating FFI required to ensure its compliance with the FFI agreement?6-5

Q 6.3.6 : What are the obligations of a participating FFI when an event of default under an FFI agreement occurs?6-6

Q 6.3.7 : How does a participating FFI seek a refund on behalf of account holders for which there has been overwithholding?6-6

: Withholding Requirements Under FFI Agreement6-6

Q 6.4 : In general, what are the withholding obligations of a participating FFI?6-6

Q 6.4.1 : How does a participating FFI determine if withholding is required?6-6

Q 6.4.2 : How does a participating FFI satisfy its withholding obligations?6-7

Q 6.4.3 : What are the obligations of a participating FFI with respect to “foreign passthru payments”?6-8

Q 6.4.4 : What is the obligation of a participating FFI with respect to withholding on limited FFIs?6-9

Q 6.4.5 : What is the obligation of a participating FFI to withholding on limited branches?6-9

: Special Rule for Dormant Accounts6-10

Q 6.4.6 : What is a participating FFI’s withholding obligation with respect to dormant accounts?6-10

Q 6.8 : What are the account holder due diligence requirements that must be employed by participating FFIs with respect to preexisting accounts?6-21

Q 6.8.1 : What are a participating FFI’s due diligence obligations if a preexisting individual account has been previously documented as a U.S. account?6-22

Q 6.8.2 : What are a participating FFI’s due diligence obligations with respect to preexisting individual accounts with balances of $50,000 or less?6-22

Q 6.8.3 : What identification and documentation procedures must be employed by a participating FFI for preexisting individual accounts?6-23

: U.S. Indicia and Relevant Documentation Rules6-24

Q 6.8.4 : What are U.S. indicia for individual accounts?6-24

Q 6.8.5 : What documentation must be retained upon identifying U.S. indicia?6-25

Q 6.8.6 : Under what circumstances may a participating FFI rely upon electronically searchable account holder information to locate U.S. indicia?6-27

: High-Value Accounts6-27

Q 6.8.7 : What are a participating FFI’s due diligence obligations for accounts that exceed $1 million?6-27

: Exception for Preexisting Individual Accounts That a Participating FFI Has Documented As Held by Foreign Individuals for Purposes of Meeting Its Obligations Under Chapter 61 or Its QI, WP, or WT Agreement6-29

Q 6.8.8 : What are a participating FFI’s due diligence obligations with respect to preexisting accounts previously documented as held by foreign persons?6-29

: Account Reporting Obligations of a Participating FFI6-31

Q 6.9 : What account information is required to be reported to the U.S. by a participating FFI?6-31

Q 6.9.1 : Which financial institution is responsible for reporting U.S. accounts to the IRS?6-32

: Special Reporting6-32

Q 6.9.2 : What are the reporting obligations with respect to territory financial institutions?6-32

Q 6.9.3 : What are the reporting obligations of a sponsoring entity?6-33

Q 6.9.4 : What are the reporting obligations of a participating FFI with respect to owner-documented FFI accounts?6-33

Q 6.9.5 : Is a participating FFI permitted to report information to the U.S. separately by branch or line of business?6-34

Q 6.9.6 : What are the reporting obligations of participating FFIs with respect to accounts of nonparticipating FFIs?6-34

Q 6.9.7 : What are the reporting obligations of a participating FFI that acquires the accounts of another participating FFI?6-36

: Special U.S. Account Reporting Rules for U.S. Payors6-36

Q 6.9.8 : What are the reporting obligations for U.S. payors?6-36

: Information Required to Be Reported6-38

Q 6.10 : What is a participating FFI’s obligation regarding the annual reporting of accounts?6-38

Q 6.10.1 : What is a participating FFI’s obligation to report accounts held by specified U.S. persons?6-38

Q 6.10.2 : What is a participating FFI’s obligation to report accounts held by U.S.-owned foreign entities?6-38

Q 6.10.3 : What is a participating FFI’s obligation to report accounts held by owner-documented FFIs?6-39

: Procedures for Reporting6-40

Q 6.10.4 : What form is used by participating FFIs to report accounts to the IRS?6-40

Q 6.10.5 : When and how does a participating FFI file the Form 8966, FATCA Report?6-40

Q 6.10.6 : How does a participating FFI obtain an extension of time to file Form 8966?6-40

: Descriptions Applicable to Reporting Requirements6-41

Q 6.10.7 : What is the address that must be reported with respect to a U.S. account?6-41

Q 6.10.8 : What is the account number that must be reported with respect to a U.S. account?6-41

Q 6.10.9 : What is the account balance or value that must be reported with respect to a U.S. account?6-41

Q 6.10.10 : What information is required to be reported as to “payments made with respect to an account”?6-42

: Record Retention Requirements6-44

Q 6.10.11 : What records are required to be retained by a participating FFI?6-44

: Election to Perform Chapter 61 Reporting6-45

Q 6.11 : Under what circumstances may a participating FFI elect to report U.S. account information pursuant to chapter 61 rather than FATCA?6-45

Q 6.11.1 : What additional information must be reported by a participating FFI that makes an election to perform chapter 61 reporting?6-46

Q 6.11.2 : What information regarding accounts held by owner-documented FFIs must be reported by a participating FFI that makes an election to perform chapter 61 reporting?6-47

Q 6.11.3 : When and how is a participating FFI required to make an election to perform chapter 61 reporting?6-47

Q 6.11.4 : What is the procedure for a participating FFI to revoke an election to perform chapter 61 reporting?6-48

Q 6.11.5 : How does a participating FFI that has made an election to report under chapter 61 report its U.S. account information to the IRS?6-48

: Reporting on Recalcitrant Account Holders6-48

Q 6.12 : What are a participating FFI’s obligations with regard to the reporting of recalcitrant account holders?6-48

Q 6.12.1 : What is a “dormant account” for FATCA purposes?6-49

Q 6.12.2 : When does an account cease to be deemed a “dormant account”?6-50

Q 6.12.3 : What form should be used by a participating FFI to report recalcitrant accounts?6-50

Q 6.12.4 : When must a participating FFI report regarding its recalcitrant accounts?6-50

Q 6.12.5 : May a participating FFI seek an extension of time to report recalcitrant accounts?6-50

Q 6.12.6 : What are a participating FFI’s record retention requirements with respect to recalcitrant accounts?6-51

: Special Reporting Rules for 2014 and 20156-51

Q 6.13 : What are the special reporting rules for calendar years 2014 and 2015?6-51

Q 6.13.1 : What information is required to be reported for the 2014 and 2015 calendar years by participating FFIs?6-51

Q 6.13.2 : What information is required to be reported for the 2014 and 2015 calendar years by participating FFIs making an election to perform chapter 61 reporting?6-52

Q 6.13.3 : What form should a participating FFI use to report account information for the 2014 and 2015 calendar years?6-53

: Reporting Requirements of QIs, WPs, and WTs6-54

Q 6.14 : What are the reporting obligations of QIs, WPs, and WTs?6-54

: Expanded Affiliated Group Requirements6-56

Q 6.15 : What are the requirements for FFIs that are part of an expanded affiliated group?6-56

: Limited Branches6-56

Q 6.15.1 : What if a participating FFI has branches that cannot satisfy the participating FFI requirements?6-56

Q 6.15.2 : What is the definition of “branch”?6-57

Q 6.15.3 : What is the definition of “limited branch”?6-57

Q 6.15.4 : What are the requirements for limited branch status?6-58

Q 6.15.5 : What are the time limits applicable to limited branch status?6-59

Q 6.15.6 : What is the “same jurisdiction” exception and how does it apply to limited branches?6-59

: Limited FFI6-60

Q 6.15.7 : What if one of the FFIs in an expanded affiliated group cannot satisfy the participating FFI requirements?6-60

Q 6.15.8 : What is the definition of a “limited FFI”?6-60

Q 6.15.9 : What are the conditions for limited FFI status?6-61

Q 6.15.10 : What are the time limits applicable to limited FFI status?6-61

Q 6.15.11 : Under what circumstances is a limited FFI exempt from registering?6-62

Q 6.15.12 : What is the “same jurisdiction” exception and how does it apply to limited FFIs?6-64

: Special Rule for QIs6-65

Q 6.15.13 : What are the limited FFI rules in the context of a QI agreement?6-65

: Verification6-65

Q 6.16 : What are the obligations of a participating FFI to ensure compliance with the terms of the FFI agreement?6-65

: Compliance Program6-65

Q 6.16.1 : What is a participating FFI’s obligation to establish and implement a compliance program?6-65

: Certifications of Responsible Officer6-66

Q 6.16.2 : What due diligence certifications are required to be made by a participating FFI’s responsible officer?6-66

: Consolidated Compliance Program6-68

Q 6.16.3 : What are the requirements for a compliance program in the context of an expanded affiliated group?6-68

Q 9.2 : When is a withholding agent required to withhold on a payment to an NFFE?9-2

: Exceptions to Withholding Requirement9-3

Q 9.3 : What exceptions apply to the rule requiring withholding on payments to an NFFE?9-3

Q 9.3.1 : What is the definition of “publicly traded corporation”?9-4

Q 9.3.2 : What is the definition of “certain affiliated entities related to a publicly traded corporation”?9-6

Q 9.3.3 : What is the definition of “certain territory entities”?9-6

Q 9.3.4 : What is the definition of “active NFFE”?9-7

Q 9.3.5 : What is the definition of “excepted nonfinancial entities”?9-9

Q 9.3.6 : What is a “nonfinancial group”?9-10

Q 9.3.7 : What is a “holding company”?9-10

Q 9.3.8 : What is a “treasury center”?9-11

Q 9.3.9 : What is a “captive finance company”?9-12

Q 9.3.10 : What are “excepted nonfinancial start-up companies or companies entering a new line of business”?9-12

Q 9.3.11 : What are “excepted nonfinancial entities in liquidation or bankruptcy”?9-13

Q 9.3.12 : What is an “excepted inter-affiliate FFI”?9-13

Q 9.3.13 : What is an excluded “section 501(c) entity”?9-13

Q 9.3.14 : What is an excluded “nonprofit organization”?9-13

: Direct Reporting NFFE9-14

Q 9.3.15 : What is the definition of a “direct reporting NFFE”?9-14

Q 9.3.16 : How does an NFFE elect to be treated as a direct reporting NFFE?9-18

Q 9.3.17 : How does an NFFE revoke its election to be treated as a direct reporting NFFE?9-18

Q 9.3.18 : May the IRS revoke an NFFE’s election to be treated as a direct reporting NFFE?9-19

Q 9.3.19 : What is an event of default for a direct reporting NFFE?9-19

: Sponsored Direct Reporting NFFE9-20

Q 9.3.20 : What is the definition of a “sponsored direct reporting NFFE”?9-20

Q 9.3.21 : Under what circumstances may the IRS revoke an entity’s status as a sponsoring entity?9-21

Q 9.3.22 : What is the liability of the sponsoring entity for any failure to comply with FATCA’s obligations?9-21

: Payments Made to a WP, WT, or an Exempt Beneficial Owner9-21

Q 9.3.23 : Is withholding required on payments made to a WP, WT, or an exempt beneficial owner?9-21

: Rules for Determining Payee and Beneficial Owner9-22

Q 9.4 : Under what circumstances may a withholding agent treat a withholdable payment as beneficially owned by an excepted NFFE?9-22

Q 9.4.1 : Under what circumstances may a withholding agent treat a payee as a QI, WP, or WT?9-22

Q 9.4.2 : Under what circumstances may a withholding agent treat a partner or beneficiary of an NFFE that is an NWP or NWT as the payee of a withholding payment?9-22

Q 9.4.3 : Under what circumstances may a withholding agent treat the beneficial owner of a withholdable payment as an NFFE that does not have any substantial U.S. owners or that has identified all of its substantial U.S. owners?9-23

Q 9.4.4 : What is a withholding agent’s obligation in the absence of valid documentation?9-23

: Information Reporting Requirements9-23

Q 9.5 : What are the information reporting requirements imposed upon a withholding agent with respect to payments to NFFEs?9-23

Chapter 10:

Obligations of Withholding Agents to Withhold Tax and File Returns

: Withholding Agent Liability10-2

Q 10.1 : What is the extent of a withholding agent’s liability for failure to either withhold or to deposit any tax withheld?10-2

Q 10.1.1 : May a withholding agent utilize an agent to fulfill its obligations under FATCA?10-3

Q 10.1.2 : What is a withholding agent’s liability for failure to obtain proper documentation or to follow applicable presumptions?10-4

: Payment of Withheld Tax10-5

Q 10.2 : What is the procedure for a withholding agent to deposit the withheld tax?10-5

Q 10.2.1 : What is the procedure for a withholding agent to deposit tax withheld on foreign passthru payments and payments of gross proceeds?10-5

: Income Tax Returns10-5

Q 10.3 : What is the obligation of a withholding agent to file an income tax return?10-5

Q 10.3.1 : What income tax return must be filed by a participating FFI, a registered deemed-compliant FFI, and a U.S. branch treated as a U.S. person?10-6

Q 10.3.2 : What is the process for filing an amended return?10-6

: Information Returns for Payment Reporting10-6

Q 10.4 : What is the obligation of a withholding agent to file an information return?10-6

Q 10.4.1 : What is the definition of “recipient” for FATCA withholding purposes?10-7

Q 10.4.2 : Which persons are excluded from the definition of “recipient”?10-9

Q 10.4.3 : What is the definition of “chapter 4 reportable amount”?10-10

Q 10.4.4 : What information is required to be included on Form 1042-S?10-11

: Method of Reporting10-12

Q 10.5 : How do U.S. withholding agents report payments to recipients?10-12

Q 10.5.1 : How do withholding agents report payments to certain entities that are not recipients?10-15

Q 10.5.2 : What are the reporting obligations of participating FFIs and deemed-compliant FFIs (including QIs, WPs, WTs, and U.S. branches of FFIs not treated as U.S. persons)?10-16

Q 10.5.3 : What are the reporting obligations of territory financial institutions?10-17

Q 10.5.4 : What are the reporting obligations of nonparticipating FFIs?10-17

Q 10.5.5 : What are the reporting obligations of other withholding agents?10-18

Q 10.5.6 : Under what circumstances is combined Form 1042-S reporting permitted?10-18

: Magnetic Media Reporting10-18

Q 10.6 : In what format is a withholding agent required to file Form 1042-S?10-18

: Indemnification of Withholding Agents10-19

Q 10.7 : Under what circumstances is a withholding agent entitled to be indemnified?10-19

: Extensions of Time to File Forms 1042 and 1042-S10-19

Q 10.8 : Under what circumstances may a withholding agent seek an extension of time to file Forms 1042 and 1042-S?10-19

: Penalties10-19

Q 10.9 : What penalties are applicable if a withholding agent fails to file Forms 1042 or 1042-S?10-19

Q 14.6.6 : If a financial institution is in approved status and has been issued a GIIN, will it lose its GIIN if the financial institution edits its registration?14-15

: QI/WP/WT14-16

Q 14.7 : How does a financial institution that is not currently a QI, a WP, or a WT register to become one?14-16

Q 14.7.1 : How do financial institutions that are currently QIs, WPs, or WTs renew their agreements?14-16

Q 14.7.2 : Can a QI/WP/WT use the LB&I registration portal to register for FATCA and become a new QI/WP/WT?14-16

Q 14.7.3 : Must a financial institution become a QI/WP/WT in order to register under FATCA?14-17

Q 14.7.4 : If an FFI has a QI/WP/WT agreement in place, does the Responsible Party for purposes of the QI/WP/WT agreement also have to serve as the FFI’s Responsible Officer?14-17

Q 14.7.5 : If a member of the EAG is a QI/WT/WP, does the Lead FI renew the QI/WT/WP agreement on behalf of the member or does the member renew its own agreement?14-17

Q 14.7.6 : How will WPs and WTs renew their WP and WT agreements if the revised WP and WT agreements will not be published before June 30, 2014?14-18

Q 14.7.7 : When will the terms of the revised QI agreement set forth in Revenue Procedure 2014-39 be effective for (a) entities seeking QI status; and (b) entities seeking renewal of their QI agreements?14-19

Q 14.7.8 : If an entity submits an application for WP or WT status on or after April 1 and is approved for such status, what will be the effective date of its WP or WT agreement?14-20

: IGA Registration14-20

Q 14.8 : Which jurisdictions are treated as having in effect a Model 1 or Model 2 IGA?14-20

Q 14.8.1 : How do FFIs in Model 1 jurisdictions register on the FATCA registration website?14-21

Q 14.8.2 : How do FFIs in Model 2 jurisdictions register on the FATCA registration website?14-21

Q 14.8.3 : How should an FFI register if it is located in a country that has not signed an IGA, and the local laws of which do not permit the reporting of U.S. accounts or withholding of tax?14-21

Q 14.8.4 : In a Model 1 IGA jurisdiction, does the FFI need to fill out Question 10 about Responsible Officers?14-21

Q 14.8.5 : Does an FFI in a Model 1 IGA jurisdiction need to register before July 1, 2014, if the FFI is part of an EAG?14-22

Q 14.8.6 : Does an entity in a Model 1 jurisdiction that, relying on the definition of a nonreporting financial institution under the applicable IGA, qualifies as a deemed-compliant FFI or an exempt beneficial owner, need to register on the FATCA registration website?14-22

Q 14.8.7 : Given the additional time provided by Announcement 2014-38 to sign the IGA, does a reporting Model 1 FFI in such a jurisdiction need to register and obtain a GIIN before January 1, 2015?14-23

: Expanded Affiliated Group (EAG)14-23

Q 14.9 : For registration purposes, can an EAG with a Lead FI and two Member FIs be divided into (1) a group with a Lead FI and a Member FI; and (2) a Member FI that will register as a Single FI?14-23

Q 14.9.1 : What is required for an entity to be a Lead FI?14-24

Q 14.9.2 : Can a Member FI complete its FATCA registration and obtain a GIIN if the Lead FI for that Member FI has not yet registered?14-24

Q 14.9.3 : Is a Limited FFI that is a member of an EAG subject to FATCA withholding?14-24

Q 14.9.4 : If a Lead FFI of an Expanded Affiliated Group registers and lists each Member on Part 2 of the registration, does each member of the EAG still need to separately register?14-24

Q 14.9.5 : Once the Lead FI has its FATCA ID, will it be possible for each of the member Expanded Affiliated Group entities to log on at the same time to register?14-25

Q 14.9.6 : Does a Member FI need to wait until the Lead FI has obtained a GIIN before it registers or obtains a GIIN?14-25

Q 14.9.7 : If an EAG decides to designate more than one Lead FI for its group, how are additional leads added to the registration?14-25

Q 14.9.8 : How does the Lead FI access its Member FI accounts?14-25

: Sponsoring/Sponsored Entities14-26

Q 14.10 : What is the process by which a Sponsoring Entity may register its Sponsored Entities?14-26

: Responsible Officers and Points of Contact14-26

Q 14.11 : What is a Point of Contact (POC)?14-26

Q 14.11.1 : Is the Responsible Officer required to be the same person for all lines on Form 8957 or the online registration?14-27

Q 14.11.2 : What does it mean for an RO to have the authority to “establish the statuses of the financial institution’s home office and branches” as indicated on the registration form?14-29

Q 14.11.3 : Is a financial institution permitted to employ an outside organization (or individual) solely for the purpose of assisting with the registration process?14-29

Q 14.11.4 : What type of individual may serve as a Responsible Officer for purposes of Part 1, Question 10 of the FATCA registration in the case of a participating FFI, participating FFI that elects to be part of a consolidated compliance program, registered deemed-compliant FFI, reporting Model 1 FFI, Limited FFI, and U.S. financial institution?14-30

Q 14.11.5 : May the Part 4 certification be broken down into two separate declarations of the RO?14-31

Q 14.11.6 : How do the certifications in Part 4 apply to financial institutions treated as reporting Model 1 FFIs?14-32

: U.S. Financial Institutions14-33

Q 14.12 : Are U.S. financial institutions required to register under FATCA?14-33

: FFIs and EINS14-33

Q 14.13 : Is an FFI required to obtain an employee identification number (EIN)?14-33

Q 14.13.1 : How does an FFI apply for a EIN if it does not already have one?14-34

: Exempt Beneficial Owners14-34

Q 14.14 : Is a foreign central bank of issue subject to FATCA withholding if it does not register?14-34

Q 14.14.1 : Is a foreign pension plan subject to FATCA withholding if it does not register?14-34

: Registering Direct Reporting NFFEs14-35

Q 14.15 : How should an entity seeking the FATCA status of “direct reporting NFFE” (other than a sponsored direct reporting NFFE) register for this status to obtain a GIIN in order to avoid FATCA withholding?14-35

Q 14.15.1 : How should a sponsor of a sponsored direct reporting NFFE register itself for this status and obtain a GIIN?14-37

Q 14.15.2 : How does a direct reporting NFFE register as a Member FI?14-38

Q 14.15.3 : Does a direct reporting NFFE have to separately register its branches when it completes its FATCA registration?14-38

: Registration Updates14-38

Q 14.16 : What happens when an FFI’s registration is placed in “Registration Incomplete” status?14-38

Q 14.16.1 : What is the impact of completing Part 4 of the FATCA registration for each of the FATCA classifications?14-39

Q 14.16.2 : How do trustees of Trustee-Documented Trusts register?14-41

Q 14.16.3 : What should be done if an FFI’s FATCA account status is placed in “Registration Under Review” status?14-41

Q 14.16.4 : Does an FFI registering to become a participating FFI (including a reporting Model 2 FFI) need to complete a paper version of the FFI agreement?14-42

Q 14.16.5 : What action should a FATCA registrant take if it improperly completes multiple FATCA registrations?14-42

Q 14.16.6 : How does a financial institution update its FATCA registration?14-43

Q 14.16.7 : How can the access code for the FATCA account be changed?14-43

Q 14.16.8 : How can a financial institution change the FI type in question 1 of the registration?14-44

Q 14.16.9 : How can the Responsible Officer or Points of Contact be changed?14-44

Q 14.16.10 : Can a financial institution that is a Limited FFI change to a participating FFI?14-44

Q 14.16.11 : How does a financial institution edit its registration information after submitting the registration form?14-45

Q 14.16.12 : What does it mean if a financial institution’s registration status is “Registration Incomplete”?14-45

Q 14.16.13 : How does a financial institution delete its FATCA registration?14-46

: OFAC Issues14-46

Q 14.17 : Is an entity listed on the Office of Foreign Asset Control’s Specially Designated Nationals list eligible to register and receive a GIIN?14-46

: FFI/EAG Changes14-47

Q 14.18 : If a common parent of an EAG sells its interest in a wholly owned FFI that is registered as a Member FI, what impact will the sale have on the Member FI’s FATCA registration?14-47

Q 14.18.1 : Can a FATCA registrant change its FI type, which is selected at the beginning of the FATCA registration process, without reregistering?14-47

Q 14.18.2 : If a registrant has changed its name but not its FI type, does it need to reregister?14-47

Q 14.18.3 : How can an FFI that is registered as a Single FI change its FATCA registration to become a Lead FI?14-48

Q 14.18.4 : How can an FFI that is registered as a Lead FI of an EAG change its FATCA registration to become a Single FI?14-48

Q 14.18.5 : What steps does a registrant need to complete if it has dissolved?14-48

: Branch/Disregarded Entity14-48

Q 14.19 : How does a disregarded entity (DE) in a Model 1 IGA jurisdiction satisfy its FATCA registration requirements?14-48

Q 14.19.1 : How does a branch in a Model 1 IGA jurisdiction satisfy its FATCA registration requirements?14-49

Q 14.19.2 : How does a branch or a DE in a jurisdiction that does not have an IGA, or that is in a Model 2 IGA jurisdiction, satisfy its FATCA registration requirements?14-49

Q 14.19.3 : How can a withholding agent find the name and GIIN of a branch on the FFI list?14-50

Q 14.19.4 : How does a branch that has registered as a separate entity rather than as a branch of its owner correct its registration?14-50

: General Compliance14-51

Q 14.20 : How will certified deemed-compliant FFIs, owner-documented FFIs, or excepted FFIs certify to U.S. withholding agents that they are not subject to FATCA withholding in light of the fact that they are not required to register with the IRS?14-51

Q 14.20.1 : Is an FFI in a non-IGA country subject to FATCA withholding if it does not register with the IRS?14-51

Q 14.20.2 : What are the consequences of terminating the FFI agreement for a participating FFI?14-52

Q 14.20.3 : What happens if an FFI has not registered by May 5, 2014?14-52

Q 14.20.4 : Are Forms W-8 still required to be renewed by the appropriate beneficial owners?14-53

Q 14.20.5 : What should a withholding agent do if an entity account holder indicates that box 9a of Form W-8BEN-E is too small to accommodate the entity’s GIIN?14-53

Q 14.20.6 : Notice 2014-33 provides that a withholding agent or FFI may treat an obligation as a preexisting obligation if the obligation (i) is issued, opened, or executed on or after July 1, 2014, and before January 1, 2015; and (ii) is held by an entity. How does this provision apply when the recipient of a payment made under the obligation is a flow-through entity or intermediary?14-54

Q 14.20.7 : Annex I of the IGA provides that, for certain purposes, a self-certification may be made on an IRS Form W-8 or other “similar agreed form.” What would be considered a similar agreed form?14-55

Q 14.20.8 : What is an acceptable self-certification for purposes of the Annex I due diligence procedures for preexisting and new accounts? Does the self-certification form have to be agreed upon by the IGA jurisdiction and the United States?14-57

Q 14.20.9 : If a Reporting Model 1 FFI or a Reporting Model 2 FFI that is applying the due diligence procedures in section III, paragraph B, of Annex I of the IGA cannot obtain a self-certification upon the opening of a new individual account, can the FFI open the account and treat it as a U.S. Reportable Account?14-58

Q 14.20.10 : Under what circumstances is a scanned version of a Form W-8 considered to have been received electronically by a withholding agent?14-58

Q 14.20.11 : What is the physical mailing address for Forms 8966 and Form 1042?14-59

Q 14.20.12 : Must U.S. citizens living abroad comply with requests from foreign banks for their Social Security numbers?14-59

Q 14.20.13 : What is the procedure for submitting a request for an initial or additional extension of time to file Forms 8966?14-59

Q 14.20.14 : What is the procedure to submit a request to waive the requirement to file Forms 8966 electronically?14-60

Q 14.20.15 : What title should the RO include when indicating business title in the RO information section of the registration?14-61

Q 14.20.16 : How many GIINs should a single FI have?14-61

Q 14.20.17 : What are the registration and GIIN requirements for bulk acquisition and merger events?14-61

: Reporting14-62

Q 14.21 : Are filers of Form 8966 required to file a nil report?14-62

Q 14.22 : When is Form 8966 due for reporting with respect to calendar year 2014 for participating FFIs and Reporting Model 2 FFIs?14-62

: Registration System Resource Materials14-63

Q 14.23 : What training is available for the FATCA registration system?14-63

Q 14.23.1 : What help is available for the FATCA registration system?14-63

: General System Questions14-63

Q 14.24 : In what languages is the FATCA registration system available?14-63

Q 14.24.1 : Is there a mechanism to upload registration data in bulk?14-63

Q 14.24.2 : Does the system have certain mandatory fields or are they all mandatory?14-64

Q 14.24.3 : Is there an automatic check of legal names against a database to prevent misspellings or to provide consistent formatting?14-64

Q 14.24.4 : What is the maximum number of characters allowed for name fields?14-64

Q 14.24.5 : How should an FI enter the FI legal name in question 2 or the Member FI legal name in question 12 (for Lead FIs) if the FI legal name is longer than what the system allows, or has characters that the system does not allow?14-64

Q 14.24.6 : How can a financial institution register an entity in a newly created country?14-65

Q 14.24.7 : Does the system have the capability to show the questions and responses before the registration is submitted?14-65

Q 14.24.8 : Does the FATCA registration system support multiple tabs or windows?14-66

Q 14.24.9 : Can the FI registration information be downloaded?14-66

: FATCA Account Creation and Access14-66

Q 14.25 : What is the maximum number of points of contact allowed on the registration form?14-66

Q 14.26 : What is the maximum number of users that can access a FATCA account at one time?14-66

Q 14.26.1 : What are the password requirements for FATCA accounts?14-67

Q 14.26.2 : Does the FATCA registration system use challenge questions?14-67

Q 14.26.3 : Can a member of an EAG create its own FATCA account?14-68

Q 14.26.4 : What is the time lapse between the creation of the FATCA ID for the Lead FFI and the FATCA IDs for the Member FFIs?14-68

: Registration Status and Account Notifications14-68

Q 14.27 : What type of notifications will the FATCA registration system provide?14-68

Q 14.27.1 : How does a financial institution check its message board?14-69

Q 14.27.2 : How can a financial institution check the status of its registration?14-69

Q 14.27.3 : Can the Responsible Officer list more than one email address on the registration system?14-69

Q 14.27.4 : Can the change of status email notifications go to the Responsible Officer and the Points of Contact?14-69

Q 14.27.5 : What information will be in the notification email the RO receives?14-69

Q 14.33.24 : What is the format for sending metadata for file transfers to IDES?14-83

Q 14.33.25 : Is the XML data based on UTF-8 character encoding? Are there any restrictions on the range of characters that can be used?14-84

Q 14.33.26 : Is there a “not to exceed limit” on the size of the transmitted data file? Is there a method to associate and/or merge files if transmission split due to size restrictions?14-84

Q 14.33.27 : Within the XML schema, is the Sending CompanyIN data element used to determine the origin of the file?14-84

Q 14.33.28 : How will the DocTypeIndics reserved for testing purposes be used in production and test environments?14-84

Q 14.33.29 : How will the IRS handle updates to the XML schema? Will the system still be able to accept older versions of the schema or will prior years’ files need to be updated to the current schema version?14-85

Q 14.33.30 : If an individual has only received certain payment types, should the other payment types be listed with a zero amount or should they be omitted from the report for that individual?14-85

Q 14.33.31 : What is the procedure for FFIs, direct reporting NFFEs, and HCTAs to verify test data prior to the launch of IDES?14-85

Q 14.33.32 : Can an HCTA create its own standard numbering format for the MessageRefID in the 8966 XML Schema for its financial institutions to use?14-85

Q 14.33.33 : When submitting a file with amended or corrected entries, what should be included in the MessageRefId field?14-86

Q 14.33.34 : Are there any characters that are not allowed due to XML syntax rules and should be avoided in submitted XML documents?14-86

Q 14.33.35 : Are there any characters that pose a security threat and should be avoided in submitted XML documents?14-86

Q 14.33.36 : Are there any other characters where the IRS recommends replacement with XML entity references?14-86

Q 14.33.37 : Is there any element-specific XML guidance?14-87

Q 14.33.38 : Which users are permitted to submit pooled reports? What is the procedure for submission of these reports?14-87

: Data Transmission14-87

Q 14.33.39 : What are the procedures for sending files to IDES and/or ICMM systems?14-87

Q 14.33.40 : What are the procedures for sending metadata for files to IDES?14-87

Q 14.33.41 : Will requests from the IRS for information on non-consenting U.S. accounts and non-consenting nonparticipating FFIs be transmitted via email?14-88

Q 14.33.42 : Will IDES be used for transmitting the ICMM notifications?14-88

Q 14.33.43 : How will reciprocal data from the IRS be sent to an HCTA and in what format?14-88

Q 14.33.44 : How will the HCTA notify IDES of outages of their systems that will be receiving data?14-88

Q 14.33.45 : What is the procedure for sending corrected and/or amended data to receiving HCTA? Will the resubmission need to include only the corrected/amended entries or will the entire report need to be resubmitted?14-88

Q 14.33.46 : What required data validation should be done on the FATCA report data prior to being submitted to IDES?14-89

: Data Encryption and Security14-89

Q 14.33.47 : What type of data encryption should be used prior to XML data transmission?14-89

Q 14.33.48 : What encryption standard will be implemented on the transmission path?14-89

Q 14.33.49 : How will passwords and keys be controlled for data transmission?14-89

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